Stormwater Utility

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What Are the Goals & Benefits of a Stormwater Utility?

Stream

  • Improve public health and safety
  • Insure healthier habitats for town streams, the New River and the Roanoke River
  • Protect a primary drinking water source, the New River
  • Dedicate funding to comply with federal and state regulations
  • Improve customer service and reduce the backlog of resident complaints by funding infrastructure improvement projects for problem areas
  • Reduce long-term capital costs through routine and proactive maintenance
  • Improve water quality by treating surface, (non-point source), runoff
  • Minimize stream bank erosion

Who Regulates Stormwater?

  • U.S. Environmental Protection Agency
  • Virginia Department of Environmental Quality
  • Municipal Separate Storm Sewer System permit holders

What Other Localities Have a Stormwater Utility?

House

Several localities throughout the Commonwealth of Virginia have established stormwater utilities, some since the early 1990s, including:

  • Lynchburg
  • Staunton
  • Richmond
  • Portsmouth
  • Norfolk

Why Is Stormwater So Important?

Urban stormwater runoff is the number one source of surface water pollution in the United States. It is precipitation from rain or snow that does not soak into the ground.

How Much Will I Have to Pay?

Town Council has approved a residential $6 per month fee.

All other uses would be charged based upon a tiered rate shown below; these uses include, but are not limited to, the following:

  • Commercial Property
  • Industrial Property
  • Churches and non-profits
  • Multi-family with more than four units 
  • The minimum charge proposed is $6 monthly per unit.
Square feet of impervious surface area Monthly Fee
0 to 3,300 $6.00
3,300 to 6,800 $6.00
6,800 to 10,000 $12.36
10,000 to 20,000 $18.18
20,000 to 30,000 $36.36
30,000 to 40,000 $54.55
40,000 to 50,000 $72.73
50,000 to 60,000 $90.91
60,000 to 70,000 $109.09
70,000 to 80,000 $127.27
80,000 to 90,000 $145.45
90,000 to 100,000 $163.64
100,000 to 125,000 $181.82
125,000 to 150,000 $227.27
150,000 to 175,000 $272.73
175,000 to 200,000 $318.18
200,000 to 250,000 $363.64
250,000 to 300,000 $454.55
300,000 to 350,000 $545.45
350,000 to 400,000 $636.36
400,000 to 450,000 $727.27
450,000 to 500,000 $818.18
500,000 to 600,000 $909.09
600,000 to 700,000 $1,090.91
700,000 to 800,000 $1,272.73
800,000 to 900,000 $1,454.55
900,000 to 1,000,000 $1,636.36
1,000,000 to greater $1,818.18

 

How Was the Fee Determined?

The proposed fee is based on the anticipated annual budget for routine infrastructure maintenance and compliance with current regulations, as well as costs associated with future improvements to mitigate significant, existing stormwater problems within the town.

Stream

Why Not Raise Taxes?

Unlike services funded through taxes, stormwater utilities, by law, cannot be diverted to other uses unrelated to stormwater. Charges are based on total impervious area, a more equitable basis for funding.

Who Is Exempt from Paying the Fee?

As per the Code of Virginia, properties with a federal stormwater permit are exempt, including

  • VDOT rights-of-way
  • Virginia Tech
  • Town properties

All other properties would be required to pay the proposed fee.

Credits

Stormwater Utility Credits 9-23-2014 (pdf)
Stormwater Utility Credit Manual (pdf)
Stormwater Utility Credit Initial Application Form (pdf)
Stormwater Utility Credit Re-Application Form (pdf)

Town Council has adopted a credit system for the stormwater utility.  Credit will be given for new or existing stormwater management facilities that are certified to reduce runoff.  Certification is proposed to be valid for 5 years. 

Stormwater Quantity Control (entire site)

 

 

1 year storm

 

10%

2 year storm

 

10%

10 year storm

 

10%

25 year storm

 

10%

100 year storm

 

10%

Stormwater Quality Control (to current standards)

 

20%

Channel & Flood Protection Compliance (new regs)

 

20%

Maximum total credit per property

 

 50%

Tax vs. Fee

Why create a stormwater utility rather than just increasing taxes?
Stormwater utilities and user charges offer a number of advantages over property taxes. Governments all over the country are relying on user fees that are often a more stable source of revenues.

  • Revenues from stormwater fees can only be used for stormwater related expenditures. Funding from general revenue sources faces fierce competition each year among elected officials and department directors vying for their share of limited dollars.
  • Under property tax systems, stormwater managers often cannot count on budget allocations, do not have as much control over their budgets, and cannot plan as well.
  • Impervious area, the basis for most stormwater charges, can be measured and is a reasonably objective measure. The idea that property owners pay in proportion to the measured amount of hard surface on their property seems fair. Property values, conversely, are unrelated to the problem of stormwater runoff.
  • Property taxes are not an equitable means of collecting funding from everyone who uses and benefits from the stormwater system. Even though user fees are not tax deductible for individuals, businesses can deduct it as a business expense.

ERU?

What is an ERU?

An ERU is an Equivalent Residential Unit. It is the median value of impervious surface for all the detached single family residences in Blacksburg. For Blacksburg it is 3,300 square feet. For commercial and other non-residential properties, (except apartment complexes), the ERU will be applied to all the impervious surface of those properties. For example, if a commercial property has 33,000 square feet of impervious surface, they would be assessed at the rate of 10 ERUs.

Why do all single family residences pay the same amount regardless of size?
By accessing all single family residences at the same rate, it relieves the town from having to re-evaluate all properties annually to determine if the amount of impervious surface has changed or not. This will result in a significant cost savings, thereby keeping the fee rate down for all properties.

Billing

How will the utility be billed; and what happens if I don’t pay?
The Stormwater fee will be applied to monthly water/sewer/refuse bills. Theoretically, if a property owner effused to pay, they could be denied water service until the fee is paid.

Exemptions and Who  Pays

Why are churches not exempt? Why are churches and schools being billed? 
Churches and schools, just like government and other non-profit agency buildings, impact stormwater utility systems just like commercial and industrial sites. Providing for and addressing stormwater is a public service provided for by the Town of Blacksburg. All buildings contain impervious surfaces, (a surface which prevents water from being infiltrated). Impervious surfaces on the parcels of churches and schools also place a demand on the stormwater system. Stormwater runoff generated by any property must be controlled and conveyed once it leaves the property so that it does not create problems for others. Both the quantity of stormwater and the quality of stormwater, i.e. making sure pollutants are limited, impact the entire stormwater system for the Town of Blacksburg. The stormwater user fee is a utility fee, similar to water and sewer. Schools and churches have water, sewer and other utility fees; the stormwater fee should be handled similarly. Additionally, the Virginia state legislation that enables municipalities to form an enterprise fund specifically do not allow such exemptions.

Why doesn’t Virginia Tech have to pay for all of their impervious surfaces?
Virginia Tech is subject to their own Federal Municipal Separate Storm Sewer System, (MS-4), Permit. They are therefore exempt from the fee.

Service

Why does the town need more money? We already pay taxes and have dealt with stormwater for decades without any problems. Why do we need this new fee? 
New state stormwater management regulations and a new Federal MS-4 Permit will require the town to expend significantly more revenues than are currently being applied to stormwater management. Should the town choose not to comply with the mandated regulations penalties for willful non-compliance can reach up to $25,000 per day each day a separate offense or imprisonment, or both. Penalties assessed for violation of the regulations would inevitably be passed on to the citizens in the form of higher tax rates.

Credits

What kinds of activities are eligible for a credit, and who may apply?
Credits will be applied to those properties that can demonstrate compliance with specific reduction in run-off rates or volume, and those that can demonstrate water quality protections. As it would be nearly impossible to evaluate demonstrations and performance of best management practices on single family residences, the credits will only apply to apartment complexes, commercial and non-profit/non-residential properties.

What are the Benefits of a Stormwater Enterprise Fund?

  • Improved surface water, (and ultimately groundwater), quality
  • Improved stream function and value (ecosystem health)
  • Decreased drinking water treatment costs
  • Improved recreational opportunities
  • Potential property value enhancement
  • Enhanced community image and reputation
  • Attractive to home buyers and future businesses

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